WASHINGTON (MarketWatch) -- The current government approach to insolvent banks is "ad hoc" and isn't addressing the underlying problems, said Thomas Hoenig, the president of the Kansas City Federal Reserve Bank on Friday. "We...are drifting into a situation where institutions are being nationalized piecemeal with no resolution of the crisis," Hoenig said in a speech in Omaha Nebraska. The government should move to declare banks insolvent and use power to take over the failing institution and continue operations under new management, Hoenig said. This would be "temporary" and has precedent in history, he said. Worries about "systemic" intertwining of banks should not be an excuse for inaction, he said http://www.marketwatch.com/news/sto...B6-0283-466D-8628-BB818A5ECDDB}&dist=hplatest